The Specific Aims of the Project are: 1. Evaluate the effectiveness of three treatment programs for homeless mentally ill people. 2. Conduct a process evaluation that identifies the key treatment program activities that mediate positive client outcomes. 3. Conduct a contextual systems level of the impact of the new case manager/advocate for the homeless on the existing service delivery system. The methodology for three aims of the project can be summarized as follows: 1. For the effectiveness evaluation, 150 clients will be randomly assigned to one of three treatment conditions: a new case manager/advocate program, an existing daytime drop-in center for the homeless, and a, traditional outpatient therapy program. Numerous dependent variables including residential stability and psychiatric distress will be measured several times over an 18- month period. 2. After refining the process model using qualitative evaluation techniques, two quantitative process evaluations using the methodology of Judd and Kenny (1981) will be conducted. 3. Qualitative evaluation methodologies including participant observation and key informant interviews will be used in doing the systems evaluation.